Total to invest in major China project
(China Daily)Updated: 2006-12-14 16:44 Global energy giant Total plans to invest US$60 to US$80 million in one project in China in the coming two years as part of an attempt to increase its presence in the nation, according to top executives.
"We are willing to expand our co-operation with leading Chinese oil makers such as CNOOC (China National Offshore Oil Corporation) and PetroChina Co under CNPC (China National Petroleum Corp) both in China and on a global basis," said Charles Mattenet, Total's senior vice-president for Asia and the Far East.
Total told China Daily it would invest US$60 million to US$80 million in China in the coming two years, starting joint exploration in North China's Ordos Basin with its partner PetroChina, a listed subsidiary of CNPC.
Total is ranked as the fourth-largest global energy producer after Exxon Mobil, BP and Shell. The firm has developed exploration technology and is established globally in terms of energy exploration and production.
Total has global reserves, while China enjoys sound geopolitical relations with many countries rich in energy resources, Mattenet noted. That lays a solid foundation for global co-operation between Total and Chinese counterparts, he said.
"As the world's fourth-largest oil maker, we spend US$1.5 billion every year exploring oil and gas reserves," Mattenet said. "In the coming several years, we will pour US$12 billion into global oil and gas development ... Our E&P involvement in China is relatively small for the time being. But we will strengthen co-operation with Chinese companies on both local and global projects."
Total and PetroChina inked in March a production sharing contract for the evaluation, development and production of the natural gas resources of the South Sulige block. The block is located in North China's Inner Mongolia Autonomous Region and is part of the Ordos basin. The block has a proven gas reserve of several hundred billion cubic metres.
The Sulige project is Total's first exploration project in China since the world oil giant returned to the country after an absence of nearly 15 years, according to Xinhua News Agency.
Besides the South Sulige project, "several other onshore and offshore
opportunities are also under evaluation" on Total's China business radar,
Mattenet said.
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